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Japan's Money Growth Slows,
Encouraging Easy Policy

By

Michiyo SekiDow Jones Newswires

Updated Jan. 13, 2004 9:55 a.m. ET

TOKYO -- Japan's money-supply growth was at its slowest rate in a decade and bank lending slumped 5% in the fiscal third quarter, adding to expectations the Bank of Japan will keep its ultra-loose monetary policy at least through 2004.

Should the yen appreciate more against the dollar, hurting exports, or Japanese share prices fall leading up to the country's fiscal year-end March 31, pressure will build on the central bank to ease monetary settings further despite the continuing mild economic recovery, analysts said.